Zydus acquires select brands of leading animal health co Zoetis

Zoetis was spun off Pfizer in 2013; deal includes Zoetis' Haridwar unit

With an eye on the growing animal health market in India and globally, Ahmedabad-based integrated pharmaceutical player Cadila Healthcare Ltd today said that it has acquired select brands and the Haridwar manufacturing unit of Zoetis, which was spun off Pfizer in 2013, for an undisclosed sum.

The acquisition will help Zydus expand its animal health business in India and gain access to manufacturing operations which have also been catering to global markets.

The financial details of the deal remain undisclosed. As a result of the acquisition Zydus would gain access to a wide range of nutrition as well as therapeutic products which have strong brand equity and a combined turnover of Rs171 crore.

A major boost to Zydus' portfolio would be the addition of livestock farmcare products which are well accepted in the market. Zydus' access to the WHO GMP approved manufacturing facility is expected to boost its exports and institutional business. The Haridwar plant spread over 10,000 square. metres manufactures tablets, liquid orals and injectables.

Zydus Animal Health launched eight new products in India in 2014-15 and on a consolidated basis the animal health business posted sales of Rs 308 crore, with a growth of 12% during the year. The Rs 8,600 crore Zydus Group aims to post revenues of Rs 10,000 crore by 2015-16, and strategic acquisitions are expected to expand its product portfolio and market access.

Zoetis was spun off US-based pharma major Pfizer, and is the world's largest producer of medicine and vaccinations for pets and livestock. In 2012 Pfizer announced that its Animal Health business would become a standalone company called Zoetis. In the subsequent year Zoetis got listed in the New York Stock Exchange (NYSE). It posted revenues worth $4.8 billion in 2014 and is present in120 countries across the globe.

Speaking on the development, chairman and managing director, Zydus Cadila, Pankaj R Patel said, "We believe that this strategic acquisition will strengthen our portfolio of brands and add new dimensions to our growth in the animal health business. We see this as an opportunity to catapult our business to higher levels of excellence."

With a strong presence in the livestock and poultry segments, Zydus Animal Health is India's leading animal healthcare player and a market leader in various therapeutic segments which include antibacterials, NSAIDs, antimastitis, tonics and poultry vaccines amongst others in India. Zydus Animal Health has introduced the highest number of 'First in India' products, the company claimed in a statement.

Earlier around 2007 Cadila Healthcare had acquired 50% stake in its joint venture Sarabhai Zydus Animal Health Ltd making it a wholly owned subsidiary. Then again in 2011 Cadila Healthcare had acquired German animal drug company Bremer Pharma GmbH from ICICI Venture through its subsidiary Zydus Animal Health Ltd. The acquisition helped Zydus to gain strategic access into the markets of Europe, South America, Asia and Africa.

While the Indian animal health business market is valued roughly at around Rs 4,000 crore, clocking a 12% annual growth rate, the global animal health market is estimated to be around $29.5 billion and is expected to clock a CAGR of around 7% during 2015-2020.

Shares of Cadila Healthcare ended day's trade at Rs 313.5 per share on the Bombay Stock Exchange, down 2.31%.